05:29 AM EDT, 05/18/2026 (MT Newswires) -- Fitch Ratings on Monday placed Sveafastigheter's (SVEAF.ST) BBB- long-term issuer default rating on rating watch positive, following the announcement of its proposed merger with KlaraBo Sverige (KLARA-B.ST).

The all-equity transaction, which will combine KlaraBo's 17.6 billion-krona Swedish residential-for-rent portfolio with the real estate company's assets, is expected to result in a more diverse and large-scale local portfolio, as well as a higher proportion of budget-friendly older properties with renovation potential.

Fitch said the Rating Watch could take more than six months, adding that it may resolve the process with a rating upgrade to BBB once the merger completes, and additional progress is made on extending Sveafastigheter's average debt maturity to four years.